Small Business Grants for Women

If you're a woman starting a new business or wanting to expand an existing one, financing is probably at the top of your list of needs. With the credit crunch we've experienced over the last year or so financing continues to be a challenge for any entrepreneur. You may have thought about small business grants but don't know where to start. Well, here's what you need to know.

Types of Small Business Grants for Women

Federal Grants

Despite all the TV commercials, books, and hype, the federal government does not give out grants for small business start-up or expansion, except in very limited circumstances. Take a look at the new government portal at Grants.gov to see for yourself. Where they do make exceptions those business are very restricted in how the money can be spent and how the business is operated. Even if you do qualify, the reality is that you'll be working for the federal government rather than yourself.

State Grants

The federal government does award business grants to the individual States who can then turn around and offer the money to individual businesses. Many states have small business grants but rarely are they specifically aimed at women. One such example is South Carolina's $4 million Business Development program which provides grants to help stimulate job creation and the state economy. A simple web search of your state's business department will reveal what is currently out there.

Private Grants

The vast majority of small business grants for women come from private foundations and other women-oriented entities striving to promote women-owned businesses. Finding the private organizations can be time consuming if you do it on your own, but it is free that way. If you don't have the time you can search for a grant matching service that will do the work for you. But be very cautious, a good many of these services are a waste of money at best, a complete scam at worst.

Two examples of grants from private organizations are the Amber Grant and the Women's Financial Fund. The Amber grant awards small sums four times per year to women starting their own businesses. The funding is aimed at helping business owners pay essential start-up costs. Applications can be made online and recipients can re-apply every quarter.

The Women’s Financial Fund is supported through various donations and provides grants of $1,000 to $5,000 to existing business for expansion costs, and $100 to $500 to new businesses for start-up costs. Applying for the grants requires a minimal membership fee to the organization, but membership also gives you full access to their database of financial resources.

Research is Key

Unfortunately, too many people believe the “free and easy” money pitch. The fact is legitimate grant money is hard to come by. It requires endless amounts of time online, making phone calls, going to the library, etc. If it were as quick and easy as the commercials make it out to be, everyone and her sister would be starting their own businesses. At the end of the day, a better alternative to searching for grants is to contact the Small Business Administration for information on low-cost loan programs. You'll almost certainly find loan programs aimed at women that you'll qualify for.